The Buyer's Pyramid

The Buyer's Pyramid is a model that illustrates the distribution of potential customers in any given market at any given time. It shows that only a small fraction of the market is actively looking to buy right now.

The Levels of the Pyramid

• 3% are "Buying Now": These are the people who are actively in the market for your product or service.
• 7% are "Open to It": They are not actively looking, but they are open to the idea of buying.
• 30% are "Not Thinking About It": They are not for or against your product, it's just not on their radar.
• 30% "Think They're Not Interested": They have a preconceived notion that they are not interested.
• 30% are "Definitely Not Interested": They are happy with their current situation and are not interested in what you have to offer.

Implications for Marketing

• Traditional Marketing is Inefficient: Most marketing and sales efforts are focused on the 3% who are "buying now." This is a highly competitive and often price-sensitive segment.
• The Power of Education-Based Marketing: An education-based approach allows you to target the entire pyramid, including the 90% of the market that your competitors are ignoring.
• Nurturing Leads: By providing value to people who are not yet ready to buy, you can build relationships and trust, so that when they are ready to buy, they will think of you first.

Understanding the Buyer's Pyramid is essential for developing a comprehensive and effective marketing strategy.